[Federal Register Volume 65, Number 133 (Tuesday, July 11, 2000)]
[Notices]
[Pages 42737-42738]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17469]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of Filings and Information Services, 
Washington, D.C. 20549.
    Extension:

Rule 2a19-1; SEC File No. 270-294; OMB Control No. 3235-0332

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 [44 U.S.C. 3501 et seq.], the Securities and Exchange 
Commission (the ``Commission'') is soliciting comments on the 
collection of information summarized below. The Commission plans to 
submit this existing collection of information to the Office of 
Management and Budget for extension and approval.
    Rule 2a19-1 under the Investment Company Act of 1940 (the ``Act'') 
provides that investment company directors will not be considered 
interested persons, as defined by section 2(a)(19) of the Act, solely 
because they are registered broker-dealers or affiliated persons of 
registered broker-dealers, provided that the broker-dealer does not 
execute any portfolio transactions for the company's complex, engage in 
any principal transactions with the complex or distribute shares for 
the complex for at least six months prior to the time that the director 
is to be considered not to be an interested person and for the period 
during which the director continues to be considered not to be an 
interested person. The rule also requires the investment company's 
board of directors to determine that the company would not be adversely 
affected by refraining from business with the broker-dealer. In 
addition, the rule provides that no more than a minority of the 
disinterested directors of the company may be registered broker-dealers 
of their affiliates.
    Before the adoption of rule 2a19-1, many investment companies found 
it necessary to file with the Commission applications for orders 
exempting directors from section 2(a)(19) of the Act. Rule 2a19-1 is 
intended to alleviate the burdens on the investment company industry of 
filing for such orders in circumstances where there is no potential 
conflict of interest. The conditions of the rule are designed to 
indicate whether the director has a stake in the broker-dealer's 
business with the company such that he or she might not be able to act 
independently of the company's management.
    It is estimated that approximately 3,200 investment companies may 
choose to rely on the rule, and each investment company may spend one 
hour annually compiling and keeping records related to the requirements 
of the rule. The total annual burden associated with the rule is 
estimated to be 3,200 hours.
    The estimate of average burden hours is made solely for the 
purposes of the Paperwork Reduction Act, and is not derived from a 
comprehensive or even a representative survey or study of the costs of 
Commission rules and forms.
    The Commission requests written comments on: (a) Whether the 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information has 
practical utility; (b) the accuracy of the Commission's estimate of the 
burden of the collection of

[[Page 42738]]

information; (c) ways to enhance the quality, utility, and clarity of 
the information collected; and (d) ways to minimize the burden of the 
collection of information on respondents, including through the use of 
automated collection techniques or other forms of information 
technology. Consideration will be given to comments and suggestions 
submitted in writing within 60 days of this publication.
    Please direct your written comments to Michael E. Bartell, 
Associate Executive Director, Office of Information Technology, 
Securities and Exchange Commission, 450 5th Street, N.W., Washington, 
DC 20549.

    Dated: June 29, 2000.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-17469 Filed 7-10-00; 8:45 am]
BILLING CODE 8010-01-M